According to the famous Triffin paradox, if the Chinese government wants to fix the value of its currency, then All of the statements are correct China can have an open economy (i.e., allowing free flow of capital) as long as it is in control of its interest rate policy China can have an open economy (i.e., allowing free flow of capital) as long as its central bank can keep its inflation rate within a narrow band China can no longer have an open economy (i.e, allowing free flow of capital), if it also desires an interest rate policy that is free from outside influence